Roku (NASDAQ:ROKU) Shares Down 1.4% - Here's Why

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s stock price dropped 1.4% on Monday . The company traded as low as $69.11 and last traded at $70.35. Approximately 591,846 shares traded hands during mid-day trading, a decline of 84% from the average daily volume of 3,766,268 shares. The stock had previously closed at $71.37.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the stock. Benchmark reiterated a "buy" rating and set a $130.00 target price on shares of Roku in a report on Friday, May 2nd. Redburn Atlantic raised shares of Roku from a "neutral" rating to a "buy" rating and set a $100.00 price objective for the company in a research note on Monday, April 7th. JMP Securities restated a "market outperform" rating and set a $95.00 target price on shares of Roku in a report on Friday, May 2nd. Bank of America initiated coverage on Roku in a report on Thursday, March 27th. They set a "buy" rating and a $100.00 target price for the company. Finally, Jefferies Financial Group upgraded Roku from an "underperform" rating to a "hold" rating and upped their target price for the stock from $55.00 to $100.00 in a report on Thursday, February 20th. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating, fifteen have given a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat, Roku has an average rating of "Moderate Buy" and a consensus price target of $87.93.

Roku Stock Down 0.8%

The stock has a market cap of $10.34 billion, a price-to-earnings ratio of -79.58 and a beta of 2.06. The stock's 50 day moving average price is $65.92 and its two-hundred day moving average price is $74.49.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings results on Thursday, May 1st. The company reported ($0.19) EPS for the quarter, beating the consensus estimate of ($0.27) by $0.08. The company had revenue of $1.02 billion for the quarter, compared to analyst estimates of $1.01 billion. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. The firm's revenue was up 15.8% on a year-over-year basis. During the same quarter last year, the business earned ($0.35) earnings per share. On average, analysts predict that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Dan Jedda sold 1,000 shares of the stock in a transaction on Thursday, March 20th. The stock was sold at an average price of $75.00, for a total transaction of $75,000.00. Following the completion of the sale, the chief financial officer now directly owns 68,843 shares of the company's stock, valued at $5,163,225. This trade represents a 1.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Anthony J. Wood sold 4,600 shares of the stock in a transaction on Thursday, March 20th. The stock was sold at an average price of $75.00, for a total value of $345,000.00. Following the completion of the transaction, the chief executive officer now owns 6,243 shares of the company's stock, valued at $468,225. The trade was a 42.42% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 17,111 shares of company stock worth $1,365,112 over the last three months. Company insiders own 13.98% of the company's stock.

Institutional Trading of Roku

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Ameritas Advisory Services LLC acquired a new position in shares of Roku in the 4th quarter valued at about $311,000. Janney Montgomery Scott LLC acquired a new position in shares of Roku in the 4th quarter valued at about $1,353,000. Mutual Advisors LLC acquired a new position in shares of Roku in the 4th quarter valued at about $207,000. Avior Wealth Management LLC lifted its stake in shares of Roku by 11.9% in the 4th quarter. Avior Wealth Management LLC now owns 7,180 shares of the company's stock valued at $534,000 after purchasing an additional 762 shares in the last quarter. Finally, Fifth Third Bancorp lifted its stake in shares of Roku by 24.9% in the 4th quarter. Fifth Third Bancorp now owns 1,119 shares of the company's stock valued at $83,000 after purchasing an additional 223 shares in the last quarter. Hedge funds and other institutional investors own 86.30% of the company's stock.

About Roku

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.

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